With the U.S. stock market poised for its sixth consecutive day of gains, investor confidence remains elevated, bolstered by robust economic growth and the anticipation of a slowdown in inflation.
The final quarter of 2023 witnessed a notable 3.3% annualized growth in the U.S. economy, surpassing economists’ expectations of a mere 2% expansion. However, other economic indicators unveiled a mixed picture on Thursday, with durable goods orders stagnating in December and unemployment claims exceeding expectations.
Market-implied expectations for Fed interest rates remained largely stable, with a 56% probability of no change in March, followed by six consecutive cuts by December.
The dollar saw a 0.4% gain, primarily fueled by weakness in the euro after the European Central Bank highlighted recessionary risks.
Treasury yields experienced marginal declines of approximately 4 basis points, leading to gains in the fixed-income space. The iShares 20+ Year Treasury Bond ETF (TLT) recorded a 0.6% uptick.
Oil prices surged by 2% on the back of lower-than-expected inventory data and escalating tensions in the Middle East, propelling WTI to nearly $77 per barrel, its highest level in two months.
Bitcoin remained stagnant at the $40,000 mark, while gold exhibited marginal gains.
Thursday’s Performance In U.S. Major Indices, ETFs
| Major Indices | Price | % |
|---|---|---|
| Russell 2000 | 1,967.84 | 0.2% |
| S&P 500 | 4,879.59 | 0.2% |
| Nasdaq 100 | 17,516.46 | 0.1% |
| Dow Jones | 37,829.03 | 0.1% |
The SPDR S&P 500 ETF Trust (SPY) rose by 0.2% to $486.43, the SPDR Dow Jones Industrial Average (DIA) edged 0.1% higher to $378.41, and the tech-heavy Invesco QQQ Trust (QQQ) inched up by 0.1% to $426.27, as per Benzinga Pro data.
In terms of sectors, the Real Estate Select Sector Fund (XLRE) outperformed, climbing by 1.2%. Conversely, the Consumer Discretionary Select Sector Fund (XLY) underperformed, witnessing a 1.6% decline, with Tesla significantly impacting this segment.
Among industries, airlines dominated the scene, with the U.S. Global JETS ETF (JETS) surging by 2.7%.
Thursday’s Stock Movers
- Tesla Inc. experienced a substantial decline of over 12% after both its revenue and earnings fell short of analyst estimates in the last quarter, marking the company’s worst-performing day since September.
- Electric vehicle rivals Lucid Group Inc. (LCID) and Rivian Automotive Inc. (RIVN) also witnessed declines of 7% and 2%, respectively.
- Airline stocks responded to quarterly earnings, with American Airlines Group Inc. (AAL) rallying by 10%, Alaska Air Group Inc. (ALK) advancing by 5%, and Southwest Airlines Company (LUV) declining by 0.6%.
- Other companies reacting to earnings included United Rentals Inc. (URI) with a 13% surge, International Business Machines Corp. (IBM) with over a 10% increase, Las Vegas Sand Corp (LVS) rising by 0.7%, Comcast Corporation (CMCSA) surging over 3%, Humana, Inc. (HUM) witnessing an 11% decrease, Ameriprise Financial, Inc. (AMP) declining by 0.2%, Nokia Oyj (NOK) rising by 12%, Union Pacific Corporation (UNP) falling by 0.9%, Xerox Holdings Corp. (XRX) increasing by 12%, Dow, Inc. (DOW) enjoying a 2% rise, Northrop Grumman Corp. (NOC) declining by 5%, Mobileye Global Inc. (MBLY) seeing a 1% increase, and Columbia Banking Systems Inc. (COLB) plunging by 22%.
Read now: Tesla Analysts Cut Projections After Q4 Results: Stock ‘Egregiously Overvalued,’ ‘Difficult To Get Optimistic’
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